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Turning Water into Carbon: Carbon sequestration vs. water flow in the Murray-Darling Basin

  • Peggy Schrobback

    ()

    (Risk & Sustainable Management Group, School of Economics, University of Queensland)

  • David Adamson

    ()

    (Risk and Sustainable Management Group, University of Queensland)

  • John Quiggin

    ()

    (Risk & Sustainable Management Group, School of Economics, University of Queensland)

Large scale forest plantations in the Murray-Darling Basin may be embraced as a carbon sequestration mechanism under a Carbon Pollution Reduction Scheme. However, increased tree plantation will be associated with reduced inflows to river systems because of increased transpiration, interception and evaporation. Therefore, an unregulated change in land management is most likely to have a dramatic impact on the water availability. This will exacerbate the impacts of climate change projected in the Garnaut Review. This paper examines the implications of unrestricted changes in land use. These results should suggest the true costs to society from carbon sequestration by determining the tradeoffs between timber production and agricultural products.

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File URL: http://www.uq.edu.au/rsmg/WP/WPM09_02.pdf
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Paper provided by Risk and Sustainable Management Group, University of Queensland in its series Murray-Darling Program Working Papers with number WP2M09.

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Date of creation: Jan 2009
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Handle: RePEc:rsm:murray:m09_2
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  1. Adamson, David & Mallawaarachchi, Thilak & Quiggin, John, 2006. "Water use and salinity in the Murray-Darling Basin: a state contingent model," Risk and Sustainable Management Group Working Papers 149861, University of Queensland, School of Economics.
  2. Young, Michael D. & McColl, Jim C., 2009. "Double trouble: the importance of accounting for and defining water entitlements consistent with hydrological realities," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(1), March.
  3. Adamson, David & Mallawaarachchi, Thilak & Quiggin, John, 2006. "State-contingent modelling of the Murray Darling Basin: implications for the design of property rights," Risk and Sustainable Management Group Working Papers 149856, University of Queensland, School of Economics.
  4. Michael D. Young & Jim C. McColl, 2009. "Double trouble: the importance of accounting for and defining water entitlements consistent with hydrological realities ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(1), pages 19-35, 01.
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